According to Visual Capitalist, Ghana is now placed second on its list of countries with the highest default risk in 2022. Only four countries, namely, Ukraine 10,856 basis points (bps), Argentina (4,470), El Salvador (3,376), and Ethiopia (3,035) have a credit default swap spread that is higher than Ghana’s at 2,071 bps.
As shown by data from Visual Capitalist — an online publisher focused on technology and the global economy, among others — Ghana’s five-year credit default swap spread (CDSS) of 2,071 basis points (bps) is one of the highest globally. Only four countries have a credit default swap spread that is higher than that of Ghana: Ukraine (10,856 bps), Argentina (4,470 bps), El Salvador (3,376 bps), and Ethiopia (3,035 bps).
Another metric pointing to Ghana’s likely default is the country’s interest expense as a percentage of the gross domestic product (GDP). According to Visual Capitalist data, with a share of 7.2%, Ghana’s interest expense ratio is the second-highest in the world behind only that of Egypt (8.2%).
Meanwhile, according to the Visual Capitalist rankings, Tunisia is the African country with the next highest default risk in 2022 and is followed by Egypt. Globally, Tunisia is ranked third while Egypt and Kenya are ranked fifth and sixth, respectively. Completing the top ten countries with the highest default is Namibia.
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